New GL. Basics of New General ledger

Transcription

1 New GL Basics of New General ledger Manish Kumar * Screenshots and all other information are based on mysap ECC 5.0 version. The purpose of this ppt is to give a basic understanding and the configuration settings required for new GL implementation.

2 Contents Why use the New GL?? Settings for new GL New GL- An User s Perspective Reporting

3 Why use the New GL?? Business Requirement * Reporting as per different GAAP * Unified management & legal reporting New GL functionality Concept of multiple ledgers- Leading & Non leading ledger Profit Centre integrated with GL * Segmental reporting as per US GAAP * Financial statement below company code level * Reporting as per cost of sales accounting Segment defined as an enterprise element Document split functionality Functional areas included

4 Settings for New GL-(i) Organizational structure is created to map the business structure of the organization in SAP. Controlling Area- To provide a closed environment for cost accounting. Cross company code cost accounting. Company Code- Legal entity for external reporting. Compliance with local requirement as per the law of the land. Chart of Accounts- Grouping of all GL accounts used. Profit Centers -For internal management reporting as an independent responsibility centre Companies with in the company.

5 Settings for new GL-(ii) Leading Ledger- Based on the same accounting principle as that of consolidated financial statement. Integrated with all non-leading ledger & gets many of the parameters from the company code. Non-leading Ledger- Based on local accounting principles => Assignment to alternate currencies & fiscal year variant that differ from that of leading ledger. Ledger group- Grouping of ledger created for the purpose of applying the function of accounting to all ledgers. A representative ledger defined with in the ledger group determines the posting period for all the ledgers included in that ledger group. Segments() FI account assignment object derived from the master data of Profit center. Used for segment reporting. * Excerpt from IAS 14: reporting is required for a business or geographical segment when the majority of its revenues stems from sales to external customers and segment revenues account for at least 10% of total internal and external revenues of all segments, segment income accounts for at least 10% of all segment income, or segment assets account for at least 10% of the assets of all segments

6 Settings for new GL-(iii) Functional areas- For classifying the expenses of an organization by functions. Required for producing the financial statement as per cost of sales approach. Parallel Accounting (0L-Leading Ledger may use IFRS, Non leading ledger group uses local accounting principle)- Different accounting principle applied to different ledgers. Scenarios- Define the field to be updated in ledgers when it receives posting from other applications. Some std scenarios are assigned to ledgers are FIN_CONS- Update of consolidation transaction type & trading partner field FIN_PCA- Update of profit centre & partner PC field. FIN_SEGM- Update of segment, PC and etc.

7 Settings for new GL-(iv) Document splitting- Line items are split along selected This ensures creation of financial statements at level below company code. The system identifies relevant GL accounts for split as per the assigned item category in configuration. Document split rules are decided based on the transaction, variant assigned to the document type in configuration. Profit Centre may be used as Characteristic for document split. The standard document split method ( split of customer, vendor & tax) line items.

8 Settings for New GL-(v) Segment Segment is a FI account assignment object and is derived from profit centre master data. The corresponding segment is automatically updated for the relevant profit centers. The segment can be updated from BADI s also (FAGL_DERIVE_SEGMENT).

9 Settings for New GL-(vi) Segment To post, analyze and display document segment in the new GL, the following steps are required. Define the segments in configuration. Derive the segments- SAP supports derivation of segment from profit centre master data. Maintain the field status variant of the required FI accounts. Assign the required scenario to relevant ledgers.

10 Settings for New GL-(vii) Parallel Financial reporting Parallel financial accounting means that financial statements have to created in accordance with different accounting rules. Business reason- Accounting in local view is no longer sufficient by itself in the globalised world of business partners. Internationally recognized accounting standard such as IFRS are the need of the hour. New GL lets you use different ledgers as per different accounting principle. In SAP system each client has one leading ledger & essentially more than one non leading ledger.

11 Settings for New GL-(viii) Parallel Financial reporting The use of non leading ledger makes it possible to use a different fiscal year variant with in the same company code. In earlier versions of SAP it was not possible to use different fiscal year with in the same company code. Fiscal year variant for leading ledger derived from Company Code. Fiscal year variant for non leading ledger different from leading ledger.

12 Settings for New GL-(ix) Implications of using different fiscal year In Asset accounting it is still not possible for depreciation areas to have fiscal year variants with different start & finish dates. If a fiscal year variant is assigned to a depreciation area with different start & finish dates, the system issues error message. Possible solution- In the New GL in Asset Accounting, it is still not possible for depreciation areas to have fiscal year variants with different start and finish dates. If you try to assign a fiscal year variant to an area, whereby the fiscal year variant infringes this restriction, the system issues error message AC 531.However, you can assign a ledger group to this area for an inconsistent valuation, whose ledger has different fiscal year variants to the valuation area in Asset Accounting. This is both technically possible and a desired function.. SAP contends that this issue arises because of technical restrictions. Refer SAP Notes No

13 Settings for New GL-(x) Cost of Sales Accounting New GL has the ability to provide profit & loss statement of the organization based on cost of sales accounting principle. For this, all the expenses incurred are allocated to functional areas in SAP system.

14 New GL- User perspective-(i) Different views of a FI document - Two views of any FI document possible in New GL, Entry View & Ledger View Entry view- In the entry view a document contains the document line items originally entered or transferred from the original component..

15 New GL- User Perspective-(ii) In the general ledger view, a document contains the document line items originally entered or transferred from the original component and split line items generated by document splitting. Documents in the general ledger view always apply to a specific ledger. Additional line item created as a result of document split.

16 New GL Reporting-(i) Reports in New GL The standard RFBILA00( Financial Statements) is still available in New GL. The new feature includes the ability to run the report for non leading ledgers.

17 New GL Reporting-(ii) Reports in New GL New GL has the ability to give the financial statement as per the requirement (either at company code level or organization level below it). The dynamic selection button ( ) on the report screen gives the flexibility to select additional entries such as profit centre, functional area etc. By navigating through the drill down reporting (S_PL0_ ) it is very easy to turn a company code report to a profit centre report.